DISCLAIMER: Like any other post on any Forum, this post is for informational purposes only. It is not legal, tax or investment advice. The only advice I can provide is that everyone should do your own due diligence and seek advice from Professionals
[BWM] RoseRedTyler well I think there may have been some confusion about me saying "protected" monies... just wanted to make sure that was understood
[BWM] ok... so by "protected" I meant that the value was protected no matter the circumstances... ie. metals, or insured (NOT BY THAT BANK) what good is insurance from a bank that is going under... if you consider that if banking fails who would be able to secure the value of your funds from any institution
[HeIsFaithful] BWM so insured by someone like Lloyds of London?
[txgirl] BWM howdy hi gm
[BWM] HeIsFaithful yes BUT, consider this.. if say a bank had 1000 dinar accounts nationwide and each one had say 1M dollars in it... how many scenarios do you see Loyds surviving that happening again
[shasta7] BWM ... yup I agree... so that garbage of a bank will issure funds thru Llyod's of London is just not true... I know this for a Fact!!!
[HeIsFaithful] BWM Well, then there would definitely have to be feasible alternatives... I was thinking besides gold or silver of spreading money between credit unions and local banks... what are ou thinking?
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[BWM] HeIsFaithful well smaller banks offer two things 1) you know if the bank is stable where the funds are 2)if there is one catastrophic account blunder there it would cause chaos... so if you invested say 1M in a smaller bank they would begin operating with those funds expanding business and such. But say, you decide to move that money, what happens to that bank without the backing of those funds...
[HeIsFaithful] BWM well I hear what you are saying, but I was thinking of smaller chunks in local banks...also what about realestate?
[dove] BWM the loss of those funds for the smaller bank would be of greater consequence
[dove] how would they compensate?
[shasta7] listen to what BWM says... he is on the right track... :-)
[BWM] HeIsFaithful my thought is this... liquid cash for short term (why worry about interest when you are concerned about value) and investments for real estate and metals in long term opportunities.. remember tho, things vary by region what I look at for real estate (timber, development) may not be what you have available (housing, development) each region has opportunities depending on the time you are willing to stay invested or CAN stay invested...
[BWM] dove the thing about smaller banks you just need to think long term... and sit down and explain that to the bank... with a smaller bank you will probably deal with the president of the bank with a deposit of 1M dollars... and tell them hey, what are my advantages to keeping my money with you here long term... I know what my money will do for you, what will you do for me...
[BWM] if you look at smaller regional banks you will see most have much higher ratings BUT you will also see these (regional banks) are the ones that actually go under... while a national bank may close a branch you're money is still within their system.. if a regional/local bank closes you may have problems
[HeIsFaithful] BWM excellent point... now liquid cash is just investing in something you can convert to cash quickly...traditionally stocks fall into that category, but that doesn
[BWM] HeIsFaithful liquid cash TO ME... is cash on hand or convertible cash... metals particularly.. the problem with stocks is that you still have to find someone to buy them... if things tank you may not always be able to get someone to take them off your hands and WILL NOT get the value you want...
[Waiting] BWM Are you talking about asking them for higher interest rates and what else. I have a relationship with a small regional bank that I would like to keep some money in - just for the help they have given my business
[BWM] Waiting I think they will offer you everything they can... my particular favorite would be a very safe CD/Savings account with the highest interest they could offer me... say maybe 6%. Now could/would they offer me that? hard to say when most are going about 1.8% BUT if they would then I could say I would be willing to keep the funds in their for some time...which means they are making money off my money.
[BWM] Waiting here's a thought... and I know some of you will just spend money because you have it BUT... I have said about living on a budget (which we will do) and if you consider this... what amount do I need annually to support that budget. So let's go with 144,000 to make it simple... so I would have 12K a month to live off of... so my "investement account" would feed the "budget account" 144K of "interest" once a year when I flip it over... then the "budget account" would feed the "personal account" 12k each month.... just a way to know that money is safe, moving and available...
[HeIsFaithful] BWM moving toward asset based currency, that seems like where the smart investments would be...investing in those assets. I am with you on the budget deal...
[BWM] HeIsFaithful consider that some of those "assets" may become more unavailable for investment purposes... we will have to work to investment for safekeeping... those that assume this will be easy are mistaken IMO
[dove] BWM our xls spreadsheet - workbook has a page of "investment income" and budgeted expenses and savings as to where we will be a year - five and ten years out with working investments
[BWM] dove the only problem with spreadsheets is some tend to think only within the bounds of that page... you need to look outside the parameters